Last updated : 16 January 2011
ABOUT THE iXBRL SUBMISSION DEADLINE
When does iXBRL filing become mandatory?
Current advice from HMRC is that “from 1 April 2011, all companies and organisations will have to file their Company Tax Return online for any accounting period ending after 31 March 2010. Additionally, if you have to prepare accounts under the Companies Act 2006, you must file your accounts and computations in a set format - Inline eXtensible Business Reporting Language (iXBRL). If your company or organisation has to prepare accounts under the legislation governing certain financial institutions - such as building societies, friendly societies and industrial and provident societies - you must also submit accounts and computations in iXBRL format. If you run an unincorporated organisation such as a charity, club or society, or a charity which is incorporated under the Charities Act, you must submit your computations in iXBRL format. You can choose to submit your accounts in either iXBRL format or as a PDF”
Full text available at : http://www.hmrc.gov.uk/ct/ct-online/file-return/switching.htm
If your financial year end falls before 31st March 2011 and you file your accounts before 31st March 2011, filing in iXBRL format is not mandatory.
If your financial year end falls after the 1st April 2011, then your accounts will have to be submitted in iXBRL format.
Further HMRC information:
Switching from paper to online filing - http://www.hmrc.gov.uk/ct/ct-online/file-return/switching.htm
Online filing accounts formats - http://www.hmrc.gov.uk/ct/ct-returns-format-accs.pdf
When was the HMRC mandate published, i.e. how long should companies have been aware of this?
Early 2009. Development of our iXBRL adapter tools began in July 2009, making Arkk one of the earliest providers of iXBRL conversion solutions.
I haven’t any CT software and currently file on paper. What do I need to do?
You need to choose one of the HMRC recognised products for creating Corporation Tax returns. The ones that are Accounting Packages will have all three elements (CT600, CT Computation, Accounts) of the CT return in iXBRL included.
Can I test file this year’s submission a year early?
Yes. We can help you do this and give you peace of mind that your file will go through the HMRC’s electronic gateway and pass validation. Early submission appeals to a lot of company’s because all they will need to do the following year is copy the iXBRL-embedded Word or Excel document and roll forward for their next year end.
iXBRL BASICS
What’s the difference between XBRL and iXBRL?
XBRL is an XML-based computer language which alone caters for exchanging business facts in an explicit manner, but doesn’t allow for exchange of presentation.
HMRC needed to address the issue of presenting the computer-readable language in a human-readable format, so they drove the XBRL consortium to come up with iXBRL.
Inline eXtensible Business Reporting Language is the combination of XBRL data within an html page which can be opened in a web browser.
What is ‘tagging’?
Tagging is the process of associating a business concept with a data item in an Office document.
What are taxonomies?
Taxonomies are a collection of concepts. They define individual tags which identify specific items of business data.
How often will the taxonomies be updated?
Approximately once a year and HMRC will support submissions made using previous versions for a further 4 years.
What is the Minimum Tagging list and what is your advice on this?
The Minimum Tagging list is a limited pool of about 1,200 tags which, during the first 2 years of mandation, can be the used for submitting a document in iXBRL. The intention of this is to limit the strain on software developers and introduce the new standard smoothly. The full tagging list has over 5,200 items in it.
The use of the Minimum Tagging list doesn’t mean that all 1,200 tags are mandatory. The term ‘minimum’ is slightly misleading in this respect. It is highly unlikely that you will use all 1,200 tags in your iXBRL document – if you have only 100 items to tag, then that is what you will tag – and the same goes for the full 5,200 items list. The minimum tagging requirement just means that if 5 of your 100 taggable items do not match concepts in the minimum list, they can be left untagged, at least until the full list becomes obligatory.
For users converting their own accounts with the Arkk Adaptor and similar software products, it makes sense to tag all taggable items whether they are in the minimum list or not, as distinguishing between ‘minimum’ and ‘full’ tags is just an extra step in the process and will most likely not save any time or effort. From April 2013 the full tagging list will be enforced, so it makes sense in our opinion to be prepared for this and adopt a ‘full-list’ tagging approach from the outset.
See the HMRC’s “What to Tag, When to Tag” for further information - http://www.hmrc.gov.uk/ct/ct-online/file-return/online-xbrltag.pdf
What if you don’t believe you have 1,200 pieces of data to tag in your accounts?
You tag what you’ve got. If you only need 300 tags from the 1,200 available, that’s fine.
How do I get help if the tags are ambiguous for my accounts?
Ambiguities and contentious tagging decisions are not uncommon, and these will generally be a matter of individual judgement. It should be noted that the HMRC ‘soft landing’ period will permit HMRC to alert companies to incorrect tags used and advise revisions.
What about tagging statutory accounts for specialist industry entities such as insurance or oil and gas companies?
Statutory accounts for specialist industries may include technical provisions and other non-standard disclosures that are not specifically catered for by existing taxonomies. The current advice from HMRC is to do the best with what we have, which may entail exercising individual judgement to apply concepts available in existing taxonomies to non-standard accounts disclosures.
OUR PRODUCTS
What do your products do?
Our iXBRL Adapter for MS Office plugs into Microsoft Word and Excel to create iXBRL-embedded accounts documents by selecting the corresponding ‘tag’ for each element of data in the document. Our plug-in can then produce an HTML iXBRL file which can be filed with HMRC.
Why should I use your product?
If you prepare Accounts in Word or Excel and would prefer to continue to do this once iXBRL is introduced, then you need the means of converting documents into iXBRL. Currently the alternatives are either to purchase an accounts preparation package with iXBRL functionality “out of the box”, or to ask your auditors or accountants to do the conversion for you.
Our products are mainly used by companies and accountancy practices that want to keep the preparation of accounts in house, and maintain absolute control over iXBRL submissions.
We also offer template-based and outsourcing solutions to reduce the burden of compliance. Please contact our customer services team to discuss our tailored packages.
Is the Adapter a conversion tool for CT600 and CT Computation disclosures too?
No. There are over 20 established products on HMRC’s Recognised List that produce CT600 and CT Computations in iXBRL. The market has been well prepared for a while for that. The challenge for most companies is accounts conversion, which is where we come in.
Is iXBRL Adapter recognised by HMRC?
Yes. It passed the HMRC’s tests in June 2010 and features on their website http://www.hmrc.gov.uk/efiling/arkk.htm
I’m an Alphatax user. Can I use your Adapter and attach the file to my normal CT600 return?
Yes. We have customers who do just this. Most tax software products allow you to attach additional files to the CT return. Currently most companies attach a PDF, from next year they’ll attach an HTML iXBRL file.
Do you support the IFRS taxonomy?
Yes, we support all the UK taxonomies including the extensions and your software maintenance agreement with us will ensure that the software continues to do so as HMRC introduce new taxonomies.
Can all the computers point to a single version of the taxonomy on a network drive?
Yes
Why isn’t the conversion automated?
Although it may seem attractive, it is in effect impossible to build an accurate automatic routine for documents that are different every single time. The preparer of the document has often put weeks of effort into their creation and presentation, so to allow a computer programme to ‘guess’ its way through the final step of their preparation simply isn’t good enough. Users of our software benefit from quick-start facilities, ‘in play’ validation and an easy user interface that allocates tags on their command. In larger documents or those with lengthy disclosure notes, semi-automated tagging is considered by many, including some Big Four accountancy firms, to result in significant re-work and wasted effort.
How long does it take to tag a document?
While this can vary depending on competency and experience of the user, the average time taken to tag a 25 page document is about 1 day.
Do I need to tag text, numbers or both?
Almost all data found in a set of accounts can and, in our opinion, should be tagged, be they words, numbers, dates or anything else. Different concepts exist to tag the different data types one might find.
Can I create templates in Word or Excel and then distribute them?
Yes. This is an approach taken by many of our customers, including one with over 300 reporting entities. In this case, the customer’s accounts formats fit into approximately 15 templates. Recipients of a document with embedded tags do not need the Adapter software to add information, though they do need to be careful not to delete template tags by accident! Tags can be highlighted for easy identification even on a computer that isn’t running the Adapter, so this should not be too much of a problem.
Do I need to re-tag next year?
The iXBRL Adapter retains the tags in the Word or Excel for future use. Subsequent years are just a matter of creating a copy of the previous year’s document and entering fresh data. Obviously if disclosure requirements change significantly, a certain amount of re-tagging may be necessary.
Can you provide training?
Yes, we run very popular 1 and 2 day courses either our own offices in the City or at the user location. Training will generally provided by one of our former Big Four ACAs, and will cover everything from the basics of using the Adapter software to managing internal workflows and approaching complex tagging decisions. We can also walk you through your first attempt at tagging a document and demonstrate how this can then be used as a tagging template going forward.
TECHNICAL ISSUES
What are technical restrictions?
The Adapter plugs in to Microsoft Office version 2007 or later. The application runs on each desktop computer as an individual installation so no server is required.
What does my IT Manager need to know before you install the software?
We have pre-requisites to installation guide available from This e-mail address is being protected from spambots. You need JavaScript enabled to view it
We run Microsoft Office over Citrix Server; can we still use the Adapter?
Yes.
My accounts are in a pre-2007 version of Microsoft Word. What can I do?
The Adapter can open pre-2007 versions and complete the conversion process. The desktop doing the conversion must be running Office 2007 or later.
Can I send the document to peers for review?
Yes. Once tagged, the document remains a normal Word or Excel, just with iXBRL tags hidden under the skin. It can be emailed to colleagues for final checking before submission as the tags are fully portable between different users and computers.
Will the software automatically flag mis-tagging? Is there any validation? For example if ‘Director’ was tagged as ‘Gross Profit’ can the software tell that there is a numeric tag used against textual data?
Our approach is not to correct mis-tagging as such, believing that it is better to rely on human judgment than computer guesswork, but that is not to say the user is not assisted. For instance the software will validate data types, warning the user when they use the wrong tag for a certain data type. Other software assistance includes warnings of data inconsistencies (values, debits/credits, etc.), inappropriate contexts (P&L vs. Balance Sheet, for instance) and misapplication of tuples and dimensions.
If you prepare accounts in Word but have embedded Excel tables can the software apply tags to the Excel data?
We don’t support Excel embedded objects, but you can embed linked data from Excel or any other data source.
You can’t currently copy tags from an Excel document and paste them into Word, as the output comes from one or the other. There needs to be an initial decision on whether to generate the iXBRL output through Word or Excel.
When tagging an Excel workbook, if a client uses a data field to import data where a tag is already held, will a conflict arise?
There’s no conflict; it’s just a name, and Excel supports multiple names for the same cell.
Can you provide testimonials of companies that have installed the product?
Absolutely. Our first projects commenced in June 2010, and we have satisfied customers from a wide variety of industries who are happy to provide references.
What else do Arkk Solutions do?
Arkk is a pure iXBRL business, and since this is all we do, we like to think we are pretty good at it! We now have multiple products and services built upon our iXBRL engine, and the engine is used by several large players in the accounting software market to power their own iXBRL offerings. We are constantly updating our software and providing new ways for our customers to tackle their iXBRL requirements.
OTHER iXBRL DEVELOPMENTS
Do accounts sent to Companies House also have to be iXBRL compliant?
Not yet, but there was a joint filing statement in September 2009. It is expected that there will be a further announcement in early 2011.
Companies House has the facilities to receive accounts in iXBRL and is offering software vendors the option to accredit themselves as Companies House ‘compliant’. We have started this process in Q1 2011.
Is tagging of group accounts mandatory?
HMRC guidance as at September 2010 is that where a parent company is required to prepare both individual and group accounts, it is only required to file the individual accounts as an iXBRL document, with the relevant XBRL tags embedded. Where group accounts and individual accounts form part of a single consolidated document, only the items relating to the individual accounts are required to be XBRL tagged.
This advice is available in the HMRC document "XBRL - when to tag, how to tag, what to tag": http://www.hmrc.gov.uk/ct/ct-online/file-return/online-xbrltag.pdf
Refer to the XBRL UK Preparers’ and Developers’ Guide for further clarification: http://www.xbrl.org/uk/TechInfo/